In the premise of the research study, research methodology process governs the data collection process that determines the attainment of appropriate and relevant research outcomes. The research methodology framework provides a guiding base for the selection of the most appropriate data collection methods, research approach and research design, and data analysis methods (Creswell, 2003). In this research study, in the selection of the research approach, research design, and data collection methods the core consideration is given to the subject of the research investigation, i.e. impact of making corporate social responsibility mandatory in businesses across the globe. The selection of the distinct research methods and approaches has been with proper justification in order to have selection of the most desired and suitable data to reach the significant research outcomes. In the follow of the research methods, ethical considerations have been given significant value in order to maintain the validity and reliability aspects of the research work. This research work also has some limitations that are also explored in this chapter in order to assure that these aspects will be given specific attention in the future research work to improve its scope to more extent.
The selection of the research approach is the most crucial functional area in the research methodology premise as it determines the generation of interpretations of the data collected in the research study. There are two main types of research approaches exist in the research methodology framework namely inductive research approach and deductive research approach (Brink, Walt and Van Rensburg, 2006). Inductive research approach is mainly suitable for the research process in those research studies where specific data is collected and from that data generalisations are made. On the other hand, in the deductive approach, general data is collected in relation to research context and from that data specific interpretations are made. In this research study, the prime focus area of investigation is analysing the consequences of making CSR mandatory for all kinds of business organisations across the globe. Considering this objective of the research study, the inductive approach seems the most suitable research approach in this study as it is proved helpful to have collection of the specific data in relation to follow up of corporate social responsibility practices by global business organisations as a mandatory process. With the implication of this research approach, at initial level, specific data is collected and hence from this data general interpretations will be made to determine the impact of making CSR practices mandatory for global business organisations.
Research design in the research process provides a directive path for the selection of the most suitable data collection methods. In this regard, there are mainly three kinds of research designs are available with the researchers, namely exploratory research design, diagnostic research design and descriptive research design (Brink, Walt and Van Rensburg, 2006). The exploratory research design supports the research study for collection of the desired data from multiple sources and making significant interpretations of that data from having personal insight into the data. Other than this, descriptive research design is used in those research studies where qualitative data is used to analyse the research subject. The diagnostic research design is used in the scientific research studies where experimental data is required in order to address the research problem.
From among these research designs, exploratory research design is used in this research study. Exploratory research design has been proved helpful to have use of combination of data collection methods including experience survey and literature survey (Brink, Walt and Van Rensburg, 2006). In the experience survey, a survey has been conducted from the managers, employees and general public. The literature survey method has been used in order to extract the view of different researchers and scholars in relation to the subject of corporate social responsibility and its impact through making it mandatory for business organisations, all over the globe. Exploratory research design has provided a significant support for having personal insight into the research data in order to have significant interpretations of the data. Along with this, exploratory research design is considered as the most flexible research design that provides the researchers a significant flexibility to use the research data according to the nature of the research and need of the particular data collection data method. With the help of this research design the research study has examined the consequences of making CSR mandatory (Creswell, 2003).
Data Collection Methods
In the research methodology, two methods of data collection are available with the researchers’ namely primary data collection method and secondly data collection methods. The primary data collection methods provide the opportunity for collection of one hand data in the original form (Brink, Walt and Van Rensburg, 2006). The primary data collection methods are varied in nature including survey questionnaire methods, interview method, focus group method, observation method, etc. The secondary data collection methods include case study method and literature survey method. In this research study, a combination of both primary and secondary data collection methods is used. In the primary data collection method, survey questionnaire method is used. The survey is conducted with the sample of different kinds of people including managers, employees and general public who have good knowledge about corporate social responsibility practices and the impact of making these practices mandatory. The questionnaire developed for survey purpose is structured in format and has only close ended questions related to making the corporate social responsibility practices mandatory for business organisations. In addition to this, the collection of secondary data in this research study is done in the form of performing a critical analysis of the existing literatures namely academic textbooks and scholarly articles. The literatures mainly include discussion about CSR and the debates on making it mandatory for organisations (Muijs, 2010).
In order to have primary data collection through survey method, it is essential to have implication of the most suited sampling strategy. There are different kinds of sampling strategies available for such purpose including random sampling strategy, probability sampling, non-probability sampling, cluster sampling, targeted sampling, etc. From among these sampling strategies, random sampling strategy is implied in this research study for the selection of the most appropriate sample for primary data collection purpose. Simple Random sampling strategy provides the opportunity to all the members of the sample population equal probability of being the member of the selected sample size. This sampling strategy is free from any kind of bias as it does not include any discrimination with the sample population. With the implication of random sampling strategy, all the members of the sample population are listed in a tabular format and from that list selected sample size is determined on random basis. With the implication of this strategy, the sample size of 100 respondents is determined for the data collection purpose. This is the most suited sample size for the data collection purpose for collection of extensive data for this research (Berg and Latin, 2007).
Data Analysis Methods
In this research study, mixed method approach is applied for the data analysis purpose. The data is analysed with the combination of both qualitative and quantitative data analysis methods. The quantitative data analysis method is applied for the analysis of quantitative data collected through survey questionnaire method. The quantitative data analysis is done with the implication of the graphical data presentation method under which the responses of the survey are presented with the help of the graphs developed in the MS-excel (Brink, Walt and Van Rensburg, 2006). The analysis of the data is done in the percentage form. In addition to this, the analysis of literature data is done with the implication of the qualitative data analysis method. The qualitative data analysis of the data is done with the help of exploration of the evidence based data collected from different literatures through making their interpretations. The use of secondary data findings is done in order to support the primary data findings. The collection of the varied data results from these two methods has been provided helpful to generate the most relevant and suitable research outcomes for this study.
In the research study process, inclusion of ethical considerations is very much important in order to maintain validity and reliability of the research study. Use of ethical considerations is very important to maintain the degree of significance and scope of the research work (Gratton and Jones, 2010). In this relation, in the following research study also, some significant ethical considerations are given value. For instance, at the first level, the ethical consideration of confidentiality is maintained. In order to maintain ethical consideration of confidentiality, all the participants of the survey have been assured that their personal information will be kept secured and will not be disclosed to any other third party for having illegal use. In addition to this, a written consent of the participants is also availed for having participation in the research data collection process. For such purpose none of the participant is pressurised for data collection, however only those people are selected who have given their written consent to take part in this process. Other than this, the ethical aspects of credibility is also maintained in this research work and for such purpose, all the authors whose work is used for reference purpose are given value in the research through giving proper references and in-text citation. In order to maintain ethical aspects in the research, the issue of plagiarism is also avoided in this research study (Gratton and Jones, 2010). All the information in this research study is presented in the original form and none kind of data is copied and pasted in this research work. Hence, varied ethical aspects are given value in this research study, which have helped to maintained validity and reliability aspects of the research study.
The research studies despite significant efforts of the researchers remained affected with some critical limitations due to some unavoidable reasons. In this regard, this research study is also affected by some critical limitations. The main research limitations are described in the below points:
These limitations are very much critical for the scope of this research study in the related field.
The research methodology developed in this research study is quite supportive and crucial to address the research problem and reach the significant research outcomes in an appropriate manner. The selection of the research approach and research design has been proved quite appropriate as they have directed to have selection of the most appropriate data collection methods for this research study. The use of survey questionnaire method for primary data collection purpose and the use of literature survey method for secondary data collection purpose have been proved quite supportive to address the research problem in a valid and authentic manner. In addition to this, the use of data analysis techniques has also been supportive to make data interpretation in line with the research problem selected for the investigation purpose. The use of crucial ethical considerations have improves the level of validity and reliability of this research work. Following to this chapter, the next chapter of the research study is data analysis and findings chapter. In this chapter, the data collected is presented with the help of graphical presentation method and it is analysed with the support of evidence based data collected from literature sources. This chapter is also quite supportive to reach the base for deriving the major conclusions of the research study.
In order to accomplish the research work in the most effective manner and achieve the framed objectives, there is a need of collecting data from external sources. In this context, survey through questionnaire can be taken as one of the major measures of data collection. The data collected with the help of this method is analysed with the help of graphical data presentation method. Results of the survey conducted can be presented as below:
Presentation and Analysis of the data
For the purpose of collecting data some specific questions have been asked to respondents which can be analysed as below:
Figure 1 reflects the gender of the respondents which reflects that majority of respondents surveyed in the research are male.
Figure 2 presents the age group of people surveyed in the research work. As per the graph presented, majority of people surveyed in the process belong to the age group of 30-35 years. About 39% of the total respondents belong to this age group. In addition to 31% of people belong to the age group of 26-30 years. However, only 5% respondents are from the age group of above 35 years.
Figure 3 reflects the experience of people included in the survey. In regard to this, majority of respondents included in the survey are having experience of 1 to 3 years.
Along with such personal information, there are some crucial specific information have been revealed from questionnaire.
Figure 4 reflects the knowledge of people regarding the concept of CSR. As per the results, majority of people (i.e. 84%) included in the survey are having effective knowledge of CSR concept. Along with this, there are 15% of people who are having limited knowledge of concept. This result is aligned with the findings of literatures, which reflects that the awareness about the CSR among people is increasing rapidly effectively in existing business world.
Figure 5 presents the companies’ perception about adoption of CSR initiatives. Majority of respondents included in the survey, i.e. 75% of total respondents consider that their respective companies are undertaking CSR initiatives effectively.
Figure 6 is the presentation of the frequency of CSR initiatives undertaken by companies in present business world. As per the results of the Survey, Majority of respondents, i.e. 53% admitted that their companies undertake CSR initiatives on frequent manner. There are 32% of people who consider that their company rarely undertakes CSR initiatives. Literatures also support such findings. For instance, as per Latif (2010) companies are rapidly undertaking CSR initiatives for the purpose of having strong presence in the competitive market place.
Figure 7 reflects the Opinion of people regarding the reasons of adopting CSR for business organizations. As per the results about 28% of total respondents consider that business organizations adopt CSR to win the trust of their consumers so that they can stand in high degree of competition. In addition to this, 15% of total respondents reflected that building of the goodwill in the market is the major reasons of adopting CSR activities. However, majority of respondents, i.e. 43% people consider that all the options presented in the questionnaires reflect the answers of the question easily. Lin (2006) has also reflected that CSR is a comprehensive phenomenon which can provide multiple benefits to the business organizations in existing competitive business world.
Figure 8 reflects the opinion of people regarding the notion that whether adoption of CSR is initiatives is beneficial for the sustainability of the company. In the response of this question, majority of respondents, i.e. 55% are agreed with this assertion. In addition to this, about 25% have presented their strong agreement on this perspective. There are only 20% total respondents, who shown their negative responses on this question. In Support of this results, Mandal,(2010) has reflected that CSR initiatives helps the company to generate positive reflection about their business activities among their customer bases, which directly helps the company to attain competitive advantages in the existing business world. Along with this, literatures have also asserted that CSR initiatives help the company to enhance the level of customer, as well as, employees, which leads the company to maintain its sustainability in the long run.
Figure 9 reflects the opinion of people regarding the fact whether the adoption of CSR initiatives is a cost occurring activity for the organization. On this perspective, majority of respondents have shown their negative attitude on this perspective. There are about 70% of total respondents who denied the fact that CSR merely a cost occurring activity. About 20% of them were strongly disagreed with this notion. In regard to this, there are only 30% of total respondents who consider CSR is a cost occurring activity for a business organization. In regard to this, Werther and Chandler (2010) have also elaborated that CSR activities may require investment of costs, but the returns of this investments are quite high, which induce the company to make such investments. As per the views of the authors, CSR implications help the business organizations to have long term profits and sustainability in the long run. In relation to this, making investments in CSR initiatives is not a cost occurring activities in the long run. In this way, the findings of the survey are quite aligned with the findings of literatures.
Figure 10 represents the graphical representation of the agreement of the respondents on the perspective that whether the implication of the obligation of adopting CSR over companies will lead to enhance the chances of the successful accomplishment of CSR objectives. In this regard, about 74% of respondents have considered that the imposition of the obligation of CSR is not quite helpful for companies. There are only 26% of people who think that forced imposition of CSR practices can be proved beneficial and motivating factors for business organizations to avail intensive benefits of CSR in existing business world. In relation to this, for the purpose of making CSR essential for business organization, it is essential to enhance the level of awareness among people regarding CSR practices up to a significant level. In respect to this, different literatures have also supported this notion in most effective manner. For instance, there are some authors, who have presented their findings regarding implication of CSR in business practices. In regard to this, there is a need of inner motivation for the management if it wants to employ some crucial and effective corporate social responsibility related efforts (Werther and Chandler, 2010). Any outside imposition or strict rules and regulations implied over the company never helps it to be prompt towards the adoption of any crucial strategic direction to the company.
Figure 11 reflects the agreement of respondents towards the notion that whether making CSR mandatory for the company will lead to enhance the operational and administrative burden over companies. In respect to this query, the majority of respondents, i.e. 70% have shown their disagreement on this fact up to a significant level. According to their views, implication of CSR is a part of long term strategic measures for the organizations that can lead the company towards long term success and sustainability. In regard to this, about 14% of total respondents are strongly disagreed upon this notion, which can make the fact more prominent. There are only 30% of total respondents, who consider CSR initiative as an administrative burden over business organizations and management. This fact has also been reflected quite critically by differentiated authors in their literary findings. As per the different literatures, in contemporary business world, there are a number of different crucial and effective changes which have completely redesign the business trends and practices. Implication of CSR is also one of such changes effectively that help the business organizations to change their operational framework (Werther and Chandler, 2010). In this regard, literatures have also highlighted that instead of considering CSR as an additional burden business organization have started to consider CSR as an essential business activity which are closely linked to their strategic orientation and are directed to help the organization to attain long term success and sustainability.
Along with such crucial and effective close ended questions, there are some open ended questions which have been asked to the respondents to get high degree of awareness regarding the research context, i.e. benefits of implicating the CSR practices in organizational culture and practices. In context to this, the first open ended question that was to respondents was related to the critical issues in making CSR as a mandatory activity for the organization. As per the responses of the question, it has been observed that there are some critical obstacles in front of business organizations in adopting CSR practices in their streamline business operations. As per the views of the majority of people included in the survey, the first and foremost problems faced by organization are related to the scarcity of financial resources. Implication of CSR practices directs business organizations to make investments and employ its financial resources. For a business organization that is operating at small level, it is not an easy task. Along with this, some of the respondents have also highlighted that lack of sufficient manpower and resources can also be considered as an obstacle in front of the business organization while implicating CSR in main operational framework.
In addition to this, second crucial open ended question asked in the research process is related to the benefits of CSR practices in the operational framework of business organizations. In respect to this, majority of respondents consider that building good image in existing business world is the foremost benefits for the organization. In addition to this, attaining competitive advantages is also considered as one of the prompt benefits for the company. Along with this, CSR practices also lead the company to have effective brand loyalty among customers.
This research study is mainly aimed to analyse the impact of the process of making CSR activities mandatory for all business organisations across the globe. The prime objective of this research study is to have exploration of the concept of CSR and its importance in the present century business world and analysis of the need of making implication of CSR mandatory at global level and its positive and negative and aspects for the business organisations. In relation to these research objectives, on the basis of the data findings generated above and their analysis it is discussed that CSR practices are very much essential and crucial for business organisations to maintain their sustainable business position and securing the interests of the stakeholders to expected level (Costa and Menichini, 2013).
The data finding reflect that considering the importance of CSR practices, almost all business organisations in the present world have been following CSR practices in order to keep their business practices sustainable and improving their corporate image. The companies follow CSR practices very frequently to a significant level. The literature data also supports the discussion by exploring that CSR practices have become crucial element of the strategic process of business organisations in almost all industries (Patil and Bhakkad, 2014). On the basis of the data findings, it has been discussed that there are varied kinds of reasons that induce business organisations to have adoption of CSR initiatives. The main reasons defined in this premise include saving of taxes imposed by government tax policies, winning the trust level of the customers, to build the goodwill of the company in the marketplace and making extra use of funds. All these kinds of benefits are the inducing factors which make the business organisations to have adoption of the CSR practices in the global marketplace. The literature data also supports that there are several reasons that have made the adoption of CSR practices an essentiality for the global business organisations (EU to force large companies to report on environmental and social impacts, 2014).
On the basis of the data findings, it has also been discussed that CSR practices are very much beneficial for business organisations in order to maintain their sustainable business position in the long run in the related business industry (Hopkins, 2012). With the help of the CSR practices, the organisations can have significant level of sustainability in the long run. Though CSR activities incur some level of cost to the business, but this has also been discussed in the findings that these initiatives are not very much cost occurring activities for the business owners. On the basis of the data findings, it has been interpreted that there is an obligation on the business organisations to have follow up of CSR practices on an effective level and hence it enhances the changes of accomplishment of the CSR objectives to a significant (Mullerat, 2010). This has been evident from the case that though CSR practices have been becoming mandatory for the companies, and though it increases operational and administrative burden on the companies, yet not to a high level. This is even also evident in the case of different business organisations that they are having real practices in the business organisations but are not facing much burden in terms of operational and administrative cost (Park, and Ghauri, 2015). In the same line, it has been also discussed that different kinds of critical issues are also faced by business organisations while following the CSR practices as a mandatory rule. Through making CSR practices mandatory, the business organisations have a pressure to follow all the business practices in abidance of the CSR regulations (Asongu, 2007). Due to this problem, they sometimes cannot take new initiatives to a good level. Other than, in each and every new strategic initiative, the business organisations have to consider the interests of the stakeholders and this also becomes a crucial issue for the business management people as it is not essential that every strategic initiative supports the interests of stakeholders (Yong Shin, 2014). Stakeholders are the key people for the business organisations and to secure their interests at the good level is very much essential practice for business organisations. In addition to this, it has also been discussed on the basis of the findings that having CSR as a mandatory practice has distinct benefits for business organisations, because with the help of CSR practices, the organisations can have a good corporate image in the sight of the customers and other stakeholders (Boubaker and Nguyen, 2012). As the present business environment is highly competitive in nature, it has become essential for companies to maintain their sustainable business position in the longer run and this can be attained only through making CSR practices mandatory. In addition to this, with the help of CSR practices, the business organisations can have profit maximisation because they can improve the relationship of the company with the suppliers and customers and hence their business activities are promoted more than competitors.
From the overall discussion, it can be concluded that implication of CSR is mandatory for organisations not because of maintaining market goodwill and image, but to secure societal interests. Compliance with CSR helps organisations to meet stakeholders’ interests at the extreme level in terms of ecology sustainability and human health. Environmental harm is the serious issue of concern to protect human life or for human welfare along with ensure survival of the future generations. An initiative to turn CSR mandatory for business organisations is the direct attempt towards securing sustainability of the environmental or natural resources like water, air, minerals and natural foods for the current and future generations. It also contributes in maintain country’s heritage for the coming generations. Moreover, it also inferred that CSR practices also helpful for organisations to keep their practices in alignment with the governmental regulations. It also reduces governmental oversight if it followed CSR as a mandatory obligation. This initiative greatly enhances transparency and ethical behaviour as it complies with rules and regulations prevailing in the country as a corporate social responsible entity. It can be inferred that compliance with CSR also good for the economy as business organisation can add more towards economic growth by meeting responsibility of serving jobs. This leads in maintaining standard of work and living standard of the society. Moreover, it also contributes in saving taxes by the provision of charity and donation to the people in need in a society. CSR is altogether good for the business organisations for the long term sustainability. It can be generalised that adoption of CSR also make easy for businesses to access capital easily for business expansion as this initiative built positive image in the eyes of investors and/or ensure long term sustainability and solvency. Financial performance of the company has also been turned up with the compliance of CSR as it leads in minimising wastage that directly adds in the cost control. Production efficiency and productivity has also improved with this effort as CSR induce firms to minimise wastages and use natural resources in the efficient way. Thus, it can be concluded that if the CSR turns mandatory, it become easy for organisations to align with business activities and goals with the interest of people in a society that ultimately stimulate business worth or value, and its existence.
In relation to making CSR practices mandatory, it has been concluded that the process of making CSR practices mandatory is a positive phenomenon in the business world in order to promote the business sustainability. Through making CSR practices mandatory, the business organisations will have a keen concern towards environmental aspects and hence they will promote the environmental sustainability to the fullest degree. Through making these practices mandatory the organisations can even win trust and loyalty of the customers as well as the other stakeholders and hence can improve their corporate reputation in the longer run. With the help of CSR practices, the business organisations at global level can have compliance with governmental regulations and hence can having saving from tax liabilities.
On the basis of the data findings and their conclusion it has been discussed that CSR practices incur cost to some extent but these initiatives do not put heavy cost burden on the organisations. Even these practices help the business organisations to maintain efficiency in their operational and administrative functional areas. With the help of CSR practices, all kinds of business organisations all over the world can have standard format for following CSR practices and hence the business organisation while operating into the international business environment will not face any kind of contradictions. Furthermore, it has also been concluded on the basis of the data findings, that CSR practices have diverse range of benefits for the business organisations and this is the reason that large number of business organisations have been adopting these practices on priority basis. With the help of these strategic indicatives the organisation even gains competitive advantage in the long run. Hence this research study has very crucial role in the field of strategic management as it provides a strong base for making CSR practices mandatory at global level through signifying its positive aspects.
CSR also known as Corporate Social Responsibility is aims to ensure that companies conduct their business in such a way that is ethical. This means that a company should take into account their social, economic and environmental impact as well as consider the human rights also. The organisation that introduces CSR behaves more ethically and contributes to economic development. Many organisations do a lot to contribute to the society and environment. Companies express their citizenship through different practices like waste and pollution reduction, by contributing in social and educational programme (Horrigan, 2010). If an organisation implements the CSR concept in a proper manner, it will benefit them in many ways: It can bring them a competitive advantage, like increase in their capital and market, increase in their profit and sales, saves operational costs, improvement in quality as well as productivity, efficient base of human resource, improve their brand image and also their reputation, increased customer loyalty, etc. Sustainability is necessary for an organisation's success. It is a question of debate from past many years that should Corporate Social Responsibility is mandatory. This is a vision to become ethical and value driven society, it is easy to say, but difficult to implement. If CSR becomes mandatory it will be very beneficial for them as:
In this way if the CSR practices are made mandatory for every company , government and also particularly for each individual then whole society, and the environment would be benefited.
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Creswell, J.W. (2003). Research Design: Qualitative, Quantitative, and Mixed Methods Approaches (2nd ed.). UK: Publisher SAGE.
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Park, B. and Ghauri, P.N. (2015). Determinants influencing CSR practices in small and medium sized MNE subsidiaries: A stakeholder perspective. Journal of World Business, Vol. 50, pp. 192-204.
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